Hong Kong’s urban renewal body has announced plans for a HK$1 billion redevelopment in To Kwa Wan affecting 180 households and 20 stores.
Under the Urban Renewal Authority (URA) project, even-numbered blocks between 324 and 354 Ma Tau Wai Road will be demolished to provide some 14,200 square metres of gross floor space, most of which will go to housing.
General Manager for Planning and Design of the URA, Mike Kwan, said at a press conference on Friday that the buildings marked for redevelopment were already in a state of disrepair, with bad environmental hygiene and loose concrete.
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The redevelopment is expected to provide 11,830 square metres of residential floor area, at an average of 50 square metres for 230 flats, as well as 2,360 square metres of commercial or retail facilities. The project will also include a carpark.
Buildings currently on the redevelopment site are three to nine storeys high and were built between 55 and 69 years ago, Kwan said. The URA expects the project to be completed by 2033-34.
In the red
Addressing concerns that the URA has been in the red for the past two fiscal years, Kwan said the new To Kwa Wan redevelopment was a “capital-light project,” adding that it would cost the authority some HK$1 billion to acquire the properties to be redeveloped.
The smaller-scale project would complement neighbouring redevelopments in the district, Kwan said.
As to whether the redevelopment would be profitable, Kwan said that fluctuations in the property market meant the authority did not have a “crystal ball” to estimate whether the project would be a commercial success.
General Manager for Acquisition and Clearance Michelle Tong said a survey would commence on Friday to ascertain the actual number of affected residents and the properties’ occupancy status.
Based on survey results, the URA will commence the acquisition process, offering property owners affected by the redevelopment cash compensation based on the price of a seven-year-old flat, or a replacement property under the URA’s “flat-for-flat” option.
Eligible tenants, meanwhile, will be rehoused or offered ex-gratia allowances.
The URA posted a HK$3.9 billion deficit in the 2023-24 fiscal year, and a HK$3.5 billion deficit for 2022-23.
It took a HK$1.5 billion loss last December after a prime residential site in Ma Tau Wai was tendered below the initial acquisition price.
